Despite ECB's Nowotny comments that.....>

EGB SUMMARY: Despite ECB's Nowotny comments that the ECB could possibly end its

stimulus programme this year if the Eurozone economy continues to grow the

Mar-18 10Y Bund contract traded higher in early morning European trading. The

10Y Bund yield is currently trading 1.5bp lower and the German curve has

flattened with the outperformance being led by the long end of the curve.  

- Ireland is taking indications of interest in the new 10Y May 2028 today at

Mid-Swaps +5bp area. Markets expect a target size to be in the region of

E3-4bln. Despite this the 10Y Bund-Irish spread is trading 1.3bp tighter at

22.6bp. The peripheral bonds are outperforming today with both Spain and Italy

leading the charge.   

- In terms of European data Spanish unemployment came in at -61.5k which was

lower than the Bloomberg median survey of -58.9k. German ILO unemployment rate

dropped to 3.6% from 3,7% after employment rose by 51k.  

- MiFID II is to be implemented today, but due to last minute waivers it is

unlikely that it will make a material impact on EGBs.

- Looking ahead attention is on US ISM Mfg data and FOMC minutes.